Expected 40 percent Drop in Remittances Threatens Somalia’s Most Vulnerable
Aisha Mohamed, a Somali returnee migrant receives money every month from her sister in Germany to support her family and business in Mogadishu. A mother of two young girls, Aisha runs a small jewellery business in Bakaaro Market and depends on the remittance funds to run her stall.
“My sister migrated to Europe five years ago when she was 23 years old,” said Aisha.
“I used to receive USD150 monthly from her and used it to sustain myself and my daughters.”
This all changed since the onset of the COVID-19 epidemic.
All money transfer businesses in Germany, along with hundreds of other enterprises were ordered to contain the spread of the disease, in a nationwide lockdown in March.
Aisha hasn’t received any money from her sister in over two months and is finding it very difficult to survive.
“My life has not been the same as I cannot afford to pay my family’s bills, including rent, electricity and water. I am focusing on my business to pay the bills and would like to make some savings as quickly as possible.”
Aisha is not alone. Millions of Somalis rely on remittances sent from family and friends living and working in countries like the United States, Canada, United Kingdom or Germany.
The disruption of cash remittances in Somalia is bad news for the country’s economy. The Federal Government of Somalia projects that inward transfers and remittances will fall by 40 per cent. Between $1.3 and $2 billion dollars are sent to Somalia by those in the diaspora each year, possibly much more, making up nearly one third of Somalia’s GDP, of close to $8 billion dollars, according to World Bank statistics. It is also estimated that in recent years, the foreign total remittances surpassed foreign aid.
According to Tatiana Hadjiemmanuel, the International Organization for Migration (IOM) Labour Migration and Development Specialist in the East and Horn of Africa, the impact of remittances cut in Somalia brought on by COVID-19 will affect many of the most vulnerable.
“In Somalia an estimated 40% of households are heavily dependent on remittances, especially poorer families, with women being particularly vulnerable. They may be pushed further into fragility and vulnerability, given the predicted reduction in the volume of remittances,” said Tatiana. “A whole of government and whole of society approach is very much needed to initiate changes in the county.,”
This is a cruel turn of events for Aisha and many others like her. She grew up surrounded by constant conflict and insecurity since the central government of Somalia collapsed in 1991 and left the country in 2015 in an attempt to reach Europe. After being abandoned by her husband in Sudan she sought help from IOM and was assisted to return home in 2019.
Aisha and her family crossed into Sudan through the “Northern Route” which is among the main migration routes out of the Horn of Africa region. Migrants using this route commonly cross into Sudan and then Libya and onwards to Europe.
She is now being helped by IOM through a grant that allowed her to set up her business in Mogadishu. But the remittances from her sister are key to keeping it going.
“IOM has highlighted from the onset of this health crisis the negative socio-economic impact that migrant communities and vulnerable sectors of the society are facing due to COVID-19. Remittances play a vital role in empowering women to have a greater role in financial decision-making. The inability to receive this support is already affecting their wellbeing,” said Isaac Munyae, the Programme Manager of IOM’s Migrant Protection and Assistance unit in Somalia.
IOM in Somalia is working closely with the government and other partners to try and mitigate the impact of the dry up in remittances funds on those most in need.
Aisha meanwhile hopes the lockdown in Germany and the economic impact on many will ease soon — and that her sister will be able to start sending the funds again soon.
For more information reach out to the IOM Somalia Programme Support Unit, Email: iomsomaliapsu@iom.int, Tel: +254 705 832 020
